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May 22, 2023 | Categories DonorPerfect Community Network Conference, DonorPerfect Fundraising Software, Featured, Integration

How to Create Radical Connection with Nonprofit AI Prospect Research

Written by DonorPerfect and Kylie Melville, Digital Marketing Manager at DonorSearch

As a fundraiser, you know that identifying and cultivating the right donors is essential for the success of your organization’s fundraising efforts. And with donations on the decline, an efficient process for nurturing prospects is becoming more and more crucial for nonprofits.

The decline in American giving

In a report released by the Lilly Family School of Philanthropy, recent data shows that – barring spikes in giving during the COVID-19 pandemic – charitable giving in the U.S. is at its lowest in two decades. The number of Americans donating to charity fell from two-thirds of U.S. households in 2000 to only half in 2018.

So, what can the fundraising community do about it?

In their 2022 book, The Generosity Crisis: The Case for Radical Connection to Solve Humanity’s Greatest Challenges, Nathan Chappell and Brian Crimmins explore the decline of American generosity, suggesting that technology be harnessed as the only scalable solution for enabling radical connection between donors and causes.

DonorPerfect Community Conference Free & Virtual June 6th & 7th, register now!

ReinvigorateInspiring Donors to Reciprocate: The Case for Radical ConnectionYour Fundraising Efforts

@ DonorPerfect REFRESH: 2023 Community Conference

Sessions held on June 6th and 7th, between 10:30 am – 4:30 pm ET

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You’re invited! In this session, fundraising technology experts Nathan Chappell and Brian Crimmins demonstrate how to re-establish the interconnection that drives reciprocity, love, and generosity. Chappell, Senior Vice President of DonorSearch AI, and Crimmins, Chief Executive Officer of Changing Our World. have decades of experience working with the world’s most effective nonprofit organizations.

How can technology inspire generosity?

Traditional methods of connecting with prospects are no longer an effective way for nonprofits to raise the funds they need. With generosity on the decline, how can fundraisers be more effective in inspiring donors? What practices should they keep moving forward, and what practices should they add?

Since the “generosity crisis” started, prospect research tools have been developed to enrich donor data (existing and future) with philanthropy markers – information about each giver’s education, religion, career industry, political affiliation, household income, and more. Typically, this data is then compared with your constituents’ giving history and the way they interact with your organization to predict which supporters are ready to take action.

DonorPerfect Community Conference Free & Virtual June 6th & 7th, register now!

How to Remodel Your Prospect Marketing Strategy Using AI

@ DonorPerfect REFRESH: 2023 Community Conference

Sessions held on June 6th and 7th, between 10:30 am – 4:30 pm ET

Register Now »

Join Sarah TeDesco – a recognized speaker and educator for fundraising organizations such as AFP, Apra, AHP, the Giving Institute, and Salesforce – for a free, virtual session where she will demonstrate how AI can assist with your organization’s prospect strategy.

How can AI help fundraising efforts?

With so many potential donors out there, it can be difficult to know where to start building your connections, and that’s where fundraising technology comes in. In 2023, there has been a buzz in the philanthropic community surrounding the use of Artificial Intelligence as a fundraising tool, allowing nonprofit organizations to identify prospects who may be interested in their cause and instantly generate copy for letters and emails.

Organizations can now reach very specific fundraising goals by using AI to determine a prospective donor’s likelihood of giving. Prospects and donors are given scores based on machine learning algorithms that analyze behavior data and their interactions with your organization. Using this data, organizations are able to identify which donors are most likely to take a particular action, such as making a first gift, a second gift, or a single $250 gift.

How AI predicts which prospects are ready to give

As an example, let’s take a closer look at three AI-based scores from DonorSearch, the philanthropy-focused AI platform that integrates with DonorPerfect to perform nonprofit prospect research.

  1. ACQUISITION MODEL – This model predicts which non-donors will most likely make a first gift to your organization. Using this score, you can focus your outreach efforts on those most likely to become donors. This can save you time and resources and help you achieve your fundraising goals more efficiently.
  2. RETENTION MODEL – This model predicts which existing first-time donors are most likely to make a second gift. By focusing on these individuals, you can increase donor retention rates and build a strong donor base for your organization.
  3. UPGRADES MODEL – This model predicts which existing donors are most likely to make a single $250 gift. By targeting these donors with specific asks, you can increase the average gift size and raise more money for your organization.

Using these AI-based scores will help you streamline your fundraising efforts and make more informed decisions about which donors to focus on. This can help you achieve your fundraising goals faster and more efficiently. Accessing and analyzing these scores is easily done when your CRM integrates with an AI platform – for DonorPerfect users who have integrated DonorSearch, for example, thousands of data points are mixed with their donor records to produce prospect research data.

This proves to be a valuable tool for fundraisers looking to improve their fundraising efforts. By using these scores to identify the right donors to focus on, you can increase donor retention rates, raise more money, and achieve your fundraising goals more efficiently.

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